Definition
Like a journal or index, a data dictionary gives relevant information about databases you are using. It guides you through a vast amount of data and helps you to easily find the ones compatible with your needs. It is part of a database management systemA set of interdependent components that interact in various ways to produce a set of desired outcomes. (DBMS).
It documents standard definitions of data elements, their meanings, and allowable values. It also enables a common interpretation of data elements.
It provides all stakeholders with relevant information and a shared understanding of the format.

A data dictionary takes the form of a table with at least 4 columns.
Name: It must be unique.
Code/Alias: Other name known by stakeholders.
Type/value/meaning: Type of data, acceptable values of it.
Comment/description: Information about the element in the contextThe circumstances that influence, are influenced by, and provide understanding of the change..
The next columns can contain calculation rules, management rules, length/size of the data, examples, or any information that helps understanding the data.
Data dictionaries area (sometimes referred to as metadataA description of data to help understand how to use that data, either in terms of the structure and specification of the data, or the description of a specific instance of an object. repositories) contain information about owners, any particular security constraints, the date and time data was created at first, and the positioning of data in the database. As organizations adopt data mining and more advanced analytics, it may provide the metadataA description of data to help understand how to use that data, either in terms of the structure and specification of the data, or the description of a specific instance of an object. required by more complex scenarios.
Why use a data dictionary?

A data dictionary allows you to keep your data in an orderly manner. This way you can easily access required information.

Using a data dictionary reduces the risk of your data being lost, damaged, or leaked.

A well-organized dictionary brings better control over your data. These will stay relevant and never be redundant, even after numerous uses.

Analysis is simplified through a dictionary. Required data is quickly accessible and make the most specific analysis easier.

As data is more relevant, well organized, and quickly accessible, decision-making will become more successful and comfortable.

The dictionary focuses on business concepts and interpretations. Data dictionary used in business analysisThe practice of enabling change in the context of an enterprise by defining needs and recommending solutions that deliver value to stakeholders. contains interpretations of business concepts and methodologies in contexts they are needed by the analysts. It makes business easy and interpretable for business analysisThe practice of enabling change in the context of an enterprise by defining needs and recommending solutions that deliver value to stakeholders..
Summary
A data dictionary is like an index allowing you to find relevant data according to the contextThe circumstances that influence, are influenced by, and provide understanding of the change..
Name: It must be unique.
Code/Alias: Other name known by stakeholders.
Type/value/meaning: Type of data, acceptable values of it.
Comment/description: Information about the element in the contextThe circumstances that influence, are influenced by, and provide understanding of the change..

Benefits
Data control
Data integrity
Data consistency
Data analysis
Decision-making efficiency
2 types of operating
Active: standard relational database
Each changeThe act of transformation in response to a need. or addition is automatically integrated to your dictionary.
Modifications are managed by software.
Passive: spreadsheet or text file
The dictionary must be manually created.
It must be regularly updated.
Usage
Adaptation
Data is raw.
A dictionary allows choosing the appropriate data according to contextThe circumstances that influence, are influenced by, and provide understanding of the change..
Interpretation
A dictionary contains business concepts and methodologies useful to business analysisThe practice of enabling change in the context of an enterprise by defining needs and recommending solutions that deliver value to stakeholders..
It simplifies business interpretation for business analysts.